Markovic spent the second half of last season on loan with the Tigers, forming a key part of Silva’s plans, and shone despite Hull’s eventual relegation.
With Silva shifting from the KC Stadium to Vicarage Road, however, Markovic looks set to be given another opportunity in the Premier League.
However, Zenit St Petersburg are also believed to be pursuing Markovic, as well as clubs from Portugal and Italy.
AC Milan were linked with a move for the former Benfica star last summer, before he ultimately joined Sporting CP, failing to make an impact on his return to Lisbon.
One hurdle could come in the form of Liverpool’s valuation, with the Mirror claiming the club would look to recoup much of the £20 million they paid to sign him from Benfica back in 2014.
Markovic has just two years left on his current contract with the Reds, and given his poor form since moving to Merseyside—and his regular injury concerns—this may be an optimistic approach.
Markovic is far from a poor player, of course, and his performances and application while at Hull have clearly impressed Silva.
Watford are a constantly shifting squad, and Markovic could come in to provide the Hornets with a new dimension in attack, potentially joining former Liverpool youngster Jerome Sinclair.
Selling Markovic would provide Jurgen Klopp with additional funds as he looks to bolster his squad ahead of 2017/18.
Andre Wisdom is expected to seal a £4.5 million move to Derby County in the coming weeks, after impressing on loan with Red Bull Salzburg last term.